Income tax authorities have asked the Board for Control of Cricket in India (BCCI) to respond by Friday, April 23, to 10 queries, including the one on income from controversy-hit IPL and its structure.

The BCCI, sources said, was asked questions relating to owners of IPL teams, their balance sheets, income earned during the various tournaments and the money paid to players.

"The tax exemption given to the BCCI was withdrawn in November 2009 and the organisation will be taxed on income from tournaments and related activities," said sources in the Central Board of Direct Taxes (CBDT).

IPL is a BCCI offspring and, as an entity, totally controlled by it.

The BCCI will have to bear the tax burden as Indian Premier League (IPL) is not a tax-entity, sources said, adding the process of investigation into the tax-related matter is likely to be completed in three to six months.

Following assessment of BCCI for 2006-07, the tax department had raised a demand of Rs 118 crore, including penalties and interest. During the year, BCCI had a total income of Rs 224 crore.

The BCCI had already paid part of the taxes but challenged the notice in the Income Tax Appellate Tribunal- Mumbai (ITAT) against the decision of the revenue department to withdraw the tax exemption given to it earlier.

CBDT sources further said that the tax authorities would scrutinise the returns of the BCCI for 2007-08 and 2008-09 and raise demands.

The BCCI has not paid any advance tax till now and hence the tax liability will also include interest and penalties, they said.

BCCI, which is registered as a society, files returns in Mumbai. In June 2007, the cricket body had changed its memorandum of association to undertake commercial activities like the IPL.

On sweat equity of Sunanda Pushkar in Kochi IPL team, which she said she is surrendering as a last ditch effort to save Union Minister and a close friend Shashi Tharoor, tax official said that it was taxable.

Secondly, they clarified that there was no provision of returning the sweat equity under the Income Tax Act.

It may be recalled Pushkar had said last week that the 19 per cent of the 25 per cent equity of Rendezvous Sports World in the Team Kochi for her was just on paper and she was yet to get the stock estimated to value at over Rs 70 crore.

The sweat equity, sources said, would be taxed as either perquisite if there is an employee-employer relationship between Pushkar and the IPL franchisee or as a gift if there is no such relationship.